Ufa will borrow 1.5 billion to cover the budget deficit

Ufa administration will take loans totaling 1,516 million rubles in 2014. Tender documentation on 14 auctions for the provision of credit facility to cover the budget deficit of the municipality amounting to 1.266 billion rubles is placed at Unified electronic trading platform. Another set of documents will be submitted on the electronic platform soon.

Loans are borrowed for a period of 6 to 10 years at 11.5 percent per annum. Previously, the credit period was less - from 1 to 7 years.

The press service of the municipality noted that long-term borrowed funds would allow the city administration more evenly than before serving municipal debt and addressing longer-term tasks. So, if in 2013 1.6 billion rubles were sent for the repayment of municipal debt, in 2014 and in subsequent years, for these purposes three times less sum will be allocated - 400-600 million rubles. Debt burden on the budget will decrease.

A stable socio-economic development of Ufa and a high credit rating allows attracting loans on favourable terms.